GH Research (NASDAQ:GHRS) shares climbed around 12% in premarket trading on Thursday after reports that Eli Lilly (NYSE:LLY) is in discussions to acquire psychedelic drug developer Atai Life Sciences (NASDAQ:ATAI), a development that sparked renewed investor interest across the sector.
Potential acquisition lifts sentiment across psychedelic drug developers
The reported takeover talks sent Atai shares soaring by as much as 53% before the opening bell, with investors speculating that increased pharmaceutical interest could benefit other companies developing psychedelic-based treatments for mental health disorders.
RBC Capital Markets analyst Brian Abrahams said the news could continue to support the broader psychedelic medicines sector.
He described GH Research as the “most straightforward and compelling read, given the nearly identical mechanism and target indication of its flagship asset, GH001, compared to ATAI’s BPL-003.”
GH001 highlighted as a comparable late-stage programme
According to RBC, GH Research’s lead development candidate, GH001, shares a similar mechanism of action and therapeutic focus with Atai’s BPL-003 programme, positioning the company as a potential beneficiary of renewed investor attention.
The reported discussions between Eli Lilly and Atai are viewed as an important development for the emerging psychedelic therapeutics market, where companies are working to develop new treatments for conditions including treatment-resistant depression and other mental health disorders.
While no transaction has been confirmed, the speculation has boosted sentiment across the sector and highlighted growing interest from large pharmaceutical companies in psychedelic-based therapies.
GH Research stock price
AtaiBeckley stock price
Eli Lilly stock price
